Wrocław

Transcription

Wrocław
Wrocław
A City With Prospects
October, 2015
Contents
The economy and economics 4
Investments 5
Wages and salaries 10
City budget 11
Society 15
Demographic challenges 16
Social infrastructure 21
Quality of life 23
City’s image and forging the residents’ identity 25
Infrastructure 27
Infrastructural challenges 28
Wrocław is curbing traffic levels 29
Wrocław as a properly planned city 30
Uncontrolled expansion of city areas 31
Revitalization of the city centre as a solution
32
to processes of uncoordinated suburbanization 2 PwC Wrocław - A city with prospects
Turin, Marseille, Valencia, Birmingham, Frankfurt and Stuttgart
are just a few examples of cities
which are situated far away from
the political and administrative
centre of a given country yet are
attractive enough to draw new
residents with their potential. Does
Wrocław have a chance of joining
this group of cities? How can its
advantages be made use of, or new
ones gained, to increase Wrocław’s
potential? How can the city be
changed to make the quality of life
become a calling card promoting
Wrocław both in Poland and the
international arena?
The aim of the information contained
in this report is not to point to Wrocław’s major problems. It is rather an
attempt to answer questions about the
actions which should be taken to enable the city to develop more quickly, in
a consistent and sustainable manner.
In seeking answers to questions concerning desirable trends in the city’s
economic, social and infrastructural
development, we did not rely exclusively
on published information or statistical
data, but we interviewed the residents,
prof. Witold Orłowski
PwC Chief Economic Advisor
representatives of the Municipal Council, entrepreneurs and institutions such
as Wrocław Agglomeration Development
Agency S.A. and the Society for the Beautification of Wrocław.
In the course of the analysis, the conclusion (common to all the areas covered
in the report) was drawn that, in the immediate future, trends in the development
of Polish cities will be initiated mainly by
demographic challenges and the growing
expectations of their present and future
residents. These challenges require the
local authorities to undertake comprehensive activities combining the city’s
economic, social and infrastructural potential. At the same time, these activities
require enlisting the cooperation of both
academic and scientific institutions, social
and business partners, as well as the city’s
inhabitants themselves.
Only together will Wrocław’s residents
be able to develop an individual, original
vision for the city’s development which
will harmoniously combine all the said
potentials and create a desirable trend
in change, thus opening up the city to all
of its residents.
Mariusz Dziurdzia
PwC Wrocław office managing Partner
PwC Wrocław - A city with prospects 3
The economy
and economics
The claim that there is an inseparable
connection between a city’s economic potential and its development is
virtually impossible to contradict. In
the contemporary world, it is difficult
to envisage a city which can develop
while its business is shrinking and the
situation of its residents is deteriorating. One of the most visible, if negative, examples of this connection is the
American city of Detroit, which fell
into serious decline as a city following
the crisis in the automotive industry
in the early 21st century. Many of its
residents left, and those who remained experienced a deterioration in
the standard of living. All this had
a negative impact on the city where
companies coping with the crisis and
economically impaired residents left
behind many empty flats and buildings which fell into ruin.
The analyses carried out by PwC have
shown that it is mainly historical
centres which are the cities with the
greatest economic power. In the past,
metropolises such as London, Beijing,
New York and Paris were the capitals
of global empires where political power
was followed by economic potential.
Although these empires no longer exist
in the historical sense, economic power
has survived. However, this does not
mean that other, smaller cities cannot
develop their economic potential. In
order to pursue this aim effectively, we
should take a look at the key factors
which could act as a magnet for at-
4 PwC Wrocław - A city with prospects
tracting capital or as a catalyst for the
economic activities of today’s city dwellers. Limiting ourselves exclusively to
economic issues, which are the preserve
of the city administration, we could
list, amongst other things: the broadly
understood, relatively low cost and ease
of carrying out investment projects, and
the supply of properly qualified potential employees.
Wrocław is already a bright dot on
Poland’s economic map, and it is
certainly noticeable on the map of
Europe. The definitely above-average
increase in GDP per inhabitant, very
large drop in unemployment, and
relatively attractive wages and salaries
have brought about an increase in the
population of the Wrocław metropolis.
But can such a trend continue for a
longer period of time? Will the rate of
attracting foreign investors continue
in the longer run? Will we manage to
effectively persuade domestic companies to develop in Wrocław rather than
seek less expensive locations in the
east of Poland, in other East European
countries, or in Asia? To what extent
will the quality of investments enable
attractive job offers to be created for
Wrocław’s present and potential residents? Will economic development
allow the city’s revenues to be increased in the long term?
The city’s location at the junction of important transport
routes, close to the western areas of Europe, made it possible to locate many investment projects which, in subsequent years of the Polish transformation, gave the city and the
region the impetus to undergo further development and
economic growth.
Investments
Part of Wrocław’s economic potential
is a legacy of the past – even the relatively distant past. The city’s location
at the junction of important transport
routes, close to the western areas of
Europe, made it possible to locate
many investment projects which, in
subsequent years of the Polish transformation, gave the city and the region
the impetus to undergo further development and economic growth.
candidates, companies were also
attracted by the availability of well-educated technical staff. Jobs were
created for engineers and specialists
with secondary technical qualifications.
Production companies also needed
many people with secondary vocational
qualifications. Soon the potential of
the Wrocław agglomeration itself was
used up, and employees began to be recruited in more distant municipalities.
Wrocław is already a
bright dot on Poland’s
economic map, and it is
certainly noticeable on
the map of Europe.
There are many factories in Wrocław
which manufacture parts for global automotive giants, home appliances, and electronic equipment. Large domestic family
businesses dealing in the areas of services,
pharmacy, and advanced technologies are
also developing. In Wrocław, a cluster of
centres for financial, accounting, and IT
services has been created. Both university
graduates, including those specializing
in technology-related subjects, which are
so important to development, as well as
experienced specialists, can find employment here. There are job opportunities
for secondary and vocational school
leavers. In 2015, the city’s unemployment
rate dropped to 3.9%.
As early as in the 1990s, large automotive concerns began investing in the
region bringing their collaborators to
Wrocław. At the same time, companies
representing the home appliance and
electromechanical industries developed. Apart from the convenient location and the relatively good knowledge
of foreign languages among potential
PwC Wrocław - A city with prospects 5
The city has also been found to be a
convenient place for setting up service centres. The first companies to
come to Wrocław offered accounting
services and administrative support to
global customers. They mainly hired
people with economic qualifications
and an excellent command of foreign
languages – both experienced specialists and many graduates of Wrocław
universities who were novices on the
labour market. The development of IT
companies also proved an important
factor – service and research & development centres were established by
international players, domestic giants,
and local companies. Today, Wrocław
is the third business service centre in
Poland – after Warsaw and Kraków
– in terms of the number of employees. Close to 24 thousand people have
found jobs here. Moreover, compared
with other cities, Wrocław nearly has
the largest percentage of centres for
Compared with other cities, Wrocław nearly has
the largest percentage of centres for research and
development services, i.e. those which are the
most advanced technologically.
6 PwC Wrocław - A city with prospects
research and development services,
i.e. those which are the most advanced
technologically – 26% (the first place
goes to Rzeszów with 27%).
At the same time, in Wrocław, whose
residents are famous for their unusual
entrepreneurship, local companies
developed which became well-known
across Poland and Europe, and some
of them even worldwide. The pharmaceutical and chemical sectors, the
electronics industry, and the service
and commercial sectors grew strong.
According to the PwC report Capital
for Development, 105 companies listed
on the Warsaw Stock Exchange operate in Lower Silesia, which is the second
best result in Poland, after the Masovian Voivodeship. The vast majority
are private businesses which began
operating on a very small scale.
Today, Wrocław is a place where the
paths of global investors and domestic entrepreneurs with strong market
positions meet. A city of IT specialists
and high technologies, production
technologies, services for business,
and –very important to the city’s
development – universities and other
institutions of higher education. The
city’s current strategy, which covers
the period to 2020, attempts to seek
sources for the metropolis’s development in its natural advantages. On the
one hand, there are factors which may
attract foreign investors and facilitate
the cooperation of local enterprises
with foreign entities, such as: the presence of transport routes and communication infrastructure, the proximity
of other Member States of the European Union – including Germany,
which is Poland’s largest partner in
trade – and the qualifications of potential employees. On the other hand,
factors affecting the development
of domestic companies, such as the
residents’ strong inclination to engage
in business activities – Wrocław is a
city with many small and medium-sized companies – and a relatively high
percentage of 20–30-year-olds who
are well-educated, resourceful and who
have aspirations.
Generally speaking, the strategic
vectors of the city’s development have
remained similar to the current directions. The talk is of industries such as
high technologies, financial services,
the automotive industry, home appliances, logistics, and transport. However,
it seems that in the long run, it will not
be possible for the city to develop only
by locating more relatively less advanced investment projects here. Some
of them are based on the difference in
wages and salaries between the home
countries and Poland, but we know that
this specific competitive edge should
disappear in the long-term. In certain
industries, wages and salaries are already on a European level.
In the long run, it will
not be possible for the
city to develop only by
locating more relatively
less advanced investment projects here.
The people living in Wrocław are bold and
outgoing. They are the key factor in the city’s
development. Thanks to a positive attitude, foreign investments are well received in Wrocław,
and people who do business worldwide feel good
here. Wrocław is also a place where many private banks and companies have been established,
built up from scratch by Wrocław’s resourceful
residents. For many of them Poland is already
too crowded, so they are expanding to European
and global markets – and they are successful.
Grzegorz Dzik
Chairman of the Management Board
Impel S.A.
PwC Wrocław - A city with prospects 7
On the one hand, innovations should be the main
inducement for attracting
new investors, and on the
other hand space is needed
for the resourceful city
dwellers to enable them to
put their ideas into practice.
According to the city authorities’ plans,
the type and quality of investments
should be the differentiating factor
in the long term. On the one hand,
innovations should be the main inducement for attracting new investors,
and on the other hand space is needed
for resourceful city dwellers to enable
them to put their ideas into practice.
Business activities based on innovations should foster diversity, which
could offset the potential effect of a
deterioration in economic activity on
the Wrocław’s economy.
The city would like to specialize in
niche solutions and in customized
services and products, i.e. those which
carry a lot of added value. Looking
at the implementation of this strate-
gy, one cannot help noticing the city
authorities’ initiative in this regard –
there is the Wrocław Research Centre
EIT+ and technology parks functioning
in the city, and investors representing
the high technology sector are also
being attracted. It can be said that
Wrocław already has a certain quality
which, if used properly, could produce
some good results.
Knowledge, i.e. the availability of
properly educated staff, is one of
the pillars of economic development
which will become increasingly important. That is why proper cooperation
between the city authorities and the
universities and employers is so important. By following an appropriate
policy, subjects of study can be promoted in advance, and these graduates
will be sought by employers in the future. Examples of the actions taken in
this area include, among other things,
the programmes The Language of Machines – which supports the learning
of logical thinking and programming
from early childhood – or Wrocław is
Working which is intended for Wrocław residents with non-IT qualifications who would like to work in the IT
industry. For entrepreneurs, the ease
of setting up and running a business is
a crucial differentiating factor.
One of the greatest challenges for the city’s further development is to continuously improve the education system
to ensure it meets the needs of a modern economy. The key factor which contributes to the development of Polish
and foreign companies operating in Wrocław is to provide well-educated people. Wrocław Agglomeration Development
Agency , being an institution which operates between state administration offices and businesses, initiates and supports
cooperation between these two spheres and plays the role of “interpreter”. A few years ago, we launched the project Wrocław Koduje to support (also financially) training courses aimed at retraining people with university degrees to enable them
to work in the IT industry. Moreover, we cooperate with special economic zones in promoting and developing vocational
and technical education, and we support companies in creating corporate sponsorship classes in vocational schools.
Łukasz Czajkowski
Director of Bussiness Support Centre
Wroclaw Agglomeration Development Agency
8 PwC Wrocław - A city with prospects
A friendly business environment could encourage
many of the 140 thousand
students who study in Wrocław each year to stay here
thanks to finding an interesting job or due to the fact
that they consider Wrocław
a friendly place for doing
business on their own.
Looking back at the last two decades,
Wrocław is one of the most effective
cities at attracting foreign investments.
It has a system of organizational
support for investors wishing to locate
branches of their business here. However, it should be remembered that huge
foreign investments are not the only
requirement for a city to develop well.
We should bear in mind the thousands
of small, medium-sized and large
local companies, because these are the
firms which are the basis for its stable
economic existence. The city should be
their partner, sometimes advisor, and it
should support the building of a freely
accessible business infrastructure. In
times of a technological revolution,
when more and more work is being
done on a remote or irregular basis, we
should be thinking about places where
Wrocław’s present and future residents
could conduct their activities without
excessive fixed costs.
This friendly business environment
could encourage many of the 140
thousand students who study in
Wrocław each year to stay here thanks
to finding an interesting job or due to
the fact that they consider Wrocław a
friendly place for doing business on
their own. Creating highly specialized jobs also provides opportunities
for the currently employed – instead
of seeking professional challenges
further up the career ladder in Poland or Europe, they would be able to
develop in Wrocław. However, from
today’s perspective, there is a lot to
make up for in this area – the World
Bank’s 2015 ranking Doing Business
in Poland put Wrocław in 13th place
amongst the 18 Polish cities surveyed
in terms of ease of doing business, despite the fact that Wrocław outdistanced cities such as Kraków, Warsaw and
Gdańsk.
The universities, dynamic residents,
and geographical location make Wrocław
an excellent place for managing an international company. Wrocław has always had
an atmosphere of openness to experimentation and a unique approach to life compared
with other Polish cities, which make everything possible. I firmly believe that,
in the future, it is investments
in the technological sector which
will determine urban development.
Henry McGovern
Chairman
of the Supervisory Board
of AmRest Holdings SE
Each new investor – whether domestic
or foreign – would receive support from
a city representative who would lead
at each stage of its completion. We do
understand how important trust and
relationships are in business. We stick
to the old rule – that agreements should
be kept – and we promise our investors
what we can actually give them, and we
do give it to them. We also try to cooperate closely with entities which have
invested here after a given investment
project has been completed.
Rafał Dutkiewicz
Mayor of the City of Wrocław
PwC Wrocław - A city with prospects 9
Wages and salaries
There is an old proverb which claims
that money cannot buy happiness. Yet,
it is money and, actually, looking for a
job that are one of the main motivations
behind people migrating. Although,
compared with other countries in the
developed world, Poland is characterized by the relatively low mobility of its
workforce among the regions, it cannot
be said that migrations for economic
reasons are insignificant. Moreover,
given the freedom of movement of the
workforce within the European Union,
Polish cities and regions are competing
not only with one another but also with
other urban centres across the continent. Therefore, a city’s development
is possible when appropriate economic
conditions are created for its present
residents to live in, and potential future
inhabitants are offered wages and
salaries which are competitive with
those in their current place of residence. The city authorities have no direct
impact on the level of pay offered to
city dwellers. In the case of Wrocław,
the exception is the fact that, through
its institutions and, indirectly, through
companies cooperating with the local
authorities, it is now one of the largest
employers in the city. However, outside
10 PwC Wrocław - A city with prospects
this sphere, business entities are fully
autonomous in determining pay levels.
However, it should be noted that the
greater technological advancement of
the investment projects carried out
by both domestic and foreign entities
results in demand for more specialized
employees who, in turn, receive higher
pay. Therefore, also in this regard, it is
worth focusing on investors who wish to
carry out advanced projects of this kind.
According to the data of the Central
Statistical Office of Poland (GUS), in
the first half of 2015 the average gross
salary in Wrocław amounted to just
under PLN 4,300, which put Wrocław
in 6th place among voivodeship capital
cities. Among the urban centres which
outdistanced Wrocław, similar salaries
could have been earned in Kraków and
Poznań. Residents of Gdańsk, Katowice, and Warsaw would receive a salary
of approximately PLN 5,000. Compared with the remaining part of the
Lower Silesian Voivodeship, Wrocław
fares better. According to the data, for
the residents of Gdańsk, Katowice, and
Warsaw, Wrocław is not an attractive
city from an income-earning perspective. In this regard, Wrocław can put
up an equal fight with the neighbouring
Poznań and Kraków, and it also fares
better than the other voivodeship capital
cities and suburban areas. Therefore, in
promoting the agglomeration, it seems
rational to concentrate on smaller cities,
because they may well constitute the
basis for the development of Wroclaw’s
community in the future.
A city’s development is possible when appropriate economic conditions are created for its present residents to
live in, and potential future dwellers are offered wages
and salaries which are competitive with those in their
current place of residence.
One cannot help noticing that the
average salary earned in Wrocław also
differs considerably from what may
be offered by the labour market in the
western areas of the European Union.
If we look only at the figures, we will
always be fighting a losing battle. Therefore, in trying to stop the inhabitants
migrating abroad or in encouraging
those who have left in recent years
to return, we should focus on factors
other than pay.
At the same time, we should also remember that Poland will become more
and more attractive economically to
immigrants from the less developed regions of the world. Many companies in
Wrocław are already hiring employees
from countries closest to Poland, who
often have at least a basic command
of Polish. This process will progress
naturally in step with Wrocław’s
universities becoming increasingly
international. Overseas students from
less-developed countries will naturally
want to stay in a place where the economy creates more favourable living
conditions, whereas the rise of ethnic
communities in the city could act as
a magnet for other representatives of
these nationalities. It is important to
take this trend into account right now
when formulating urban policies and
to create conditions for the legal inflow
of immigrants who will be able to fill
the gaps in the labour market and, by
doing so, fund the city budget with
revenues from taxes.
PwC Wrocław - A city with prospects 11
Share in PIT 24%
The intensification
of the city’s development
requires increased financing which may be raised
either in the form
of increased budget revenues or by incurring debt.
Local taxes 13%
Education grant 13%
Income from assets 12%
Services 8%
Charges 8%
Other 7%
European subsides 7%
Budget subsidies 5%
Share in CIT 2%
General grant 1%
Percentage shares of the planned
city budget revenues in 2015
City budget
The implementation of the city development policy is not dependent solely
on the willingness of the city authorities
and residents. To make it effective, appropriate financial support is required,
which, in turn, is limited by the availaThe city budget revenues comprise local
bility of funds in the city budget.
taxes and charges (20%), income from
city assets and services represents 20%
The total city budget revenues planned of total revenues, State Budget subsidies
for 2015 are PLN 3.9bn, up 6% on the
and grants – approximately 18%, wheprevious year. At the same time, the
reas the share in personal and corporate
city is anticipating a budget deficit of
income taxes accounts for 27% of the
approximately PLN 300m.
city budget revenues.
12 PwC Wrocław - A city with prospects
Wrocław’s financial
position, compared with
other large Polish cities,
is good.
Thanks to the above-average level of GDP per
capita (155% of Poland’s
average GDP per capita),
Wrocław has a stable income-earning base.
Wrocław’s financial position, compared with other large Polish cities, is
good. Thanks to the above-average
level of GDP per capita (155% of Poland’s average GDP per capita), Wrocław has a stable income-earning base.
The high level of GDP per capita mainly affects the value of income tax receipts. Data shows that such receipts
have increased by 9% compared with
the previous year, which – with the
income tax rates left unchanged – is a
positive trend. According to the plan
for 2015, income tax receipts represent
27% of the total city budget revenues,
the vast majority of which is personal
income tax. Due to the share of income tax in the city budget, it is worth
focusing on raising the level. This can
be achieved in two ways. On the one
hand, we should encourage the people
who already live or work in Wrocław
to pay income tax here. Each year,
the city holds a competition and gives
big prizes to people who file their tax
returns with tax offices in Wrocław.
On the other hand, measures should
be taken to increase the number of residents by promoting the city properly,
and creating favourable conditions for
living and working from an economic,
social, and infrastructural perspective.
However, when planning a long-term
budget, it should be remembered that
changes in income taxes at the central
level, such as increasing the amount of
personal allowance, raising tax thresholds or lowering tax rates, will have
a negative impact on the level of the
amounts flowing into the city budget. However, at the same time the
population’s disposable income will
increase, which could lead to increased
consumption or investments and, consequently, mitigate the negative effect
of the regulatory changes on tax revenues. Local taxes and charges, which
represent one-fifth of the budget, have
increased by nearly 4% compared with
the previous year. On the one hand,
this is a favourable phenomenon. The
city is raising additional funds which
it may use for performing its tasks and
making investments. From another
point of view, an increase in local
taxes and charges means higher costs
of business activities which translate
into lower income tax receipts and
entrepreneurs’ decreased willingness
to make investment decisions. Therefore, the city should follow a very
prudent policy for determining the
rates of local taxes and charges, so as
to maintain an appropriate balance
between the city budget revenues and
the severity of the costs incurred by
taxpayers.
PwC Wrocław - A city with prospects 13
According to the plan for 2015,
the city budget expenditure
exceeds the revenues earned.
The budget deficit is expected
to be approximately PLN 275m.
The income from assets and services
provided by the city represent 20%
of the city budget. Such services
comprise, among other things, public
transport, the supply of utilities, kindergartens, schools, the use of sports
and cultural infrastructure. As in the
case of local taxes and charges, they
contribute to increasing the costs of
business activities (amongst others,
in the case of utilities). An increase in
these also translates into a drop in the
residents’ disposable income which,
in turn, translates into a lower level of
income being generated as part of the
city’s functioning. Income from central budget subsidies and grants represents approximately 18% of Wrocław’s
budget. In 2015, it has remained at a
level similar to that in the prior year.
Such income is largely independent
of the city authorities, and therefore
there is no possibility of managing the
amount in an effective manner.
Despite the fact that obtaining such
funding and its subsequent servicing
are fairly complicated, its utilization is
still very fruitful for the city.
It is also significant that in 2015 EU
funding represents approximately 7%
of the city revenues – up 13% on the
previous year. Wrocław is one of the
most effective Polish cities at obtaining
EU funding (amongst the 12 largest
cities in Poland, only Rzeszów and the
Tri-City have proved better at this). EU
funding consists mostly of non-refundable subsidies which finance a substantial part of the investments aimed
at regional development and improving
the quality of life for the residents.
Increasing the debt may be good motivation for development if the funds raised are used for making investments which support development and contribute to the
implementation of the city’s strategy.
14 PwC Wrocław - A city with prospects
According to the plan for 2015, the city
budget expenditure will exceed the
revenues earned. The budget deficit
is expected to be approximately PLN
275m (up 12% on the previous year).
The most significant amounts out of
the city’s finances are consumed by:
education and upbringing – 25%;
roads and public transport – 19%; public utilities management and environmental protection – 11%; health care,
social policy and aid – 9%. Most of
these expenses are fairly fixed, and
they certainly do not satisfy all of the
local community’s needs in the individual areas. A good spending policy
should reconcile meeting the current
needs of the city’s residents with the
financing of development investment
projects such as expanding the broadly
understood transport and technical
infrastructure, supporting enterprises,
and creating a social infrastructure of
an appropriate quality. According to
the city authorities’ declarations, the
budget deficit will be financed with a
preferential loan from the European
Investment Bank. Obtaining debt
financing does not pose a major problem for Wrocław – the city has a fairly
high rating of BBB+ (this indebtedness
is not a problem from the perspective
of the city’s ability to meet its liabilities with the possibility of problems
arising in the event of a deterioration
in economic activity). Increasing the
debt may be good motivation for development if the funds raised are used
for making investments which support
development and contribute to the
implementation of the city’s strategy.
Education and upbringing
25%
Roads and public transport
19%
The overall assessment of Wrocław’s
financial position is good. A stable
income-earning base, the effective
utilization of EU funding, a high credit
rating, and a relatively well-managed
city budget offer the chance of stable
development. A good credit rating
opens doors to various forms of financing development investment projects.
Should the potential of own funds
and EU funding be exhausted, the
city can use off-balance-sheet forms
of financing its development, such as
public private partnership which is not
currently used on a large scale. Increasing the available funds could allow
many investment tasks, which support
the city’s development, to be carried
out at the same time.
Public utilities management
11%
Aid, social policy, and health care 9%
and environmental protection
Sundry settlements
9%
8%
Public administration and service activities 7%
Culture
Housing management
6%
Security and fire protection
2%
Debt servicing
2%
2%
Physical culture
Percentage shares of the planned city budget
expenditure in 2015
PwC Wrocław - A city with prospects 15
Society
A city’s development is impossible
without the development of the social
sphere. Investments in social and
human capital, both investments in
social infrastructure and “soft” investments, produce measurable results in
the long term and allow the development potential to be used. A significant element which contributes to an
increase in the number of residents in
a given city is the high level of social
services and the standard of living.
These factors contribute to creating a
good basis for forging the residents’
identification with a region.
16 PwC Wrocław - A city with prospects
Such identification may be fostered by
creating a positive image of the city,
by giving its residents space to pursue
their own goals and ambitions, and by
launching projects aimed at getting
city dwellers involved in social life.
How is Wrocław – a city aspiring to be
at the forefront of the Polish metropolises not only in terms of infrastructure and the economy but also demography and social life – coping with
the above challenges?
A much higher birth
rate can be observed
in the municipalities
and counties outside
Wrocław, especially
the most popular
so-called “dormitory
districts” of Wrocław.
Demographic
challenges
Demographic data and numerous forecasts do not suggest a dynamic increase
in the number of Wrocław’s residents
in the longer term. This number, which
is currently 634.5 thousand* has increased slightly in recent years. The birth
rate in Wrocław in 2014 was just above
zero (0.1 per 1,000 people), proving
the highest in the Fabryczna district
(2.4), whereas a negative birth rate was
reported in the Old Town and Śródmieście (City Centre) districts. It is
worth noticing that a much higher birth
rate can be observed in the municipalities and counties outside Wrocław,
especially the most popular so-called
“dormitory districts” of Wrocław (e.g.
in Siechnice, the birth rate is 7.0).
This same trend also applies to the
migration rate which is positive in
Wrocław. In 2014, 7.5 thousand residents from other regions registered for
permanent residency here, including 3.9
thousand people from other voivodeships and 588 people from abroad. The
migration of residents from Wrocław
in the same period was 5.7 thousand
people, mostly into the Lower Silesian
voivodeship (4.3 thousand) and into
rural areas (3.8 thousand).
* data by the Statistical Office in Wrocław as of December 2014
PwC Wrocław - A city with prospects 17
However, according to long-term
forecasts the number of residents
will decrease – it is expected that by
2040 it will drop to below 600 thousand.* Not only will the number of
inhabitants in the city itself go down,
but also in the entire metropolitan
area. This is largely the result of the
negative birth rates across Poland. To
face this challenge, the city should,
on the one hand, take steps to make
it easier for young people to decide to
have children and to prevent suburbanization and, on the other hand,
effectively seek new residents. However, we should remember that the city
authorities have limited possibilities
of encouraging people to have more
children. Naturally, the proper supply
of places in Wrocław’s day care centres and kindergartens, programmes
offering discounts to large families
(amongst others, the Family Plus
Card) or providing jobs which offer
stable forms of employment may be
significant factors in deciding to have
children. The city should undertake
such activities. However, we should
not assume that they will directly
generate a considerable increase in
the birth rates in the city. It is worth
emphasizing that the activities which
may be decisive in contributing to
reversing the negative demographic
and population trends should not
concentrate on multiplying the supply
of social services but first and foremost on increasing their quality and
specialization. Residents from other
regions can also be encouraged to settle in Wrocław, which the city is doing
effectively.
In 2014, 7.5 thousand residents from other regions registered for permanent residency in Wrocław, including
3.9 thousand people from
other voivodeships and
588 people from abroad.
It is expected that
by 2040 the number
of inhabitants in Wrocław
will drop to below
600 thousand.
Population growth forecast
by age group**
2050
2045
2040
2035
75 000
321 000
180 000
72 000
352 000
158 000
71 000
375 000
144 000
75 000
386 000
138 000
81 000
2030
388 000
141 000
87 000
2025
389 000
142 000
90 000
2020
402 000
132 000
83 000
2015
432 000
115 000
0-14years
lat
0-14
15-64 years
lat
15-64
65 lat
lat<< <
years
65
0-14 lat
15-64 lat
65 lat <
*
source: Population, natural movement and migrations in the Lower Silesian voivodeship in 2014, the Tax Office in Wrocław
**source: Population growth forecast by sex and age in the territory of the city of Wrocław, GUS, March 2014
18 PwC Wrocław - A city with prospects
The activities which may be decisive in contributing
to reversing the negative demographic and population
trends should not concentrate on multiplying the supply
of social services but first and foremost on increasing
their quality and specialization.
The group which Wrocław is actively
trying to attract is the students, which
is why the city authorities attach a
great deal of importance to activities
promoting the city as a major academic centre. For years, the concept of
“a city with 100 thousand students”,
i.e. activities aimed at maintaining at
least 100 thousand students present in
Wrocław at all times, has been implemented effectively. At present, this
number is more than 120 thousand.
This is possible thanks to five universities and more than 20 institutions
of higher education functioning in
Wrocław. A significant element which
attracts new students from outside the
region each year is the high level of
education and the renown of the local
universities – the Wrocław University
of Technology and the University of
Wrocław came in fourth and seventh
respectively in the University Ranking
– Perspektywy 2015. Newcomers also
appreciate the city’s atmosphere and
openness to people from other regions.
The number of foreigners studying in
Wrocław is also growing steadily, and
due to the relatively large number of
jobs in which a knowledge of Polish is
not necessary – mainly shared service
centres – these people often stay in
Wrocław after graduating.
The city’s policy supports the creation
of study programmes which correspond to the labour market’s needs.
Owing to the large number of employers seeking IT employees, thanks to
the city authorities’ cooperation with
Wrocław’s universities, the number
of IT students has doubled over the
past few years. The above measures,
implemented along with attracting
new investors, has resulted in one of
the lowest unemployment rates among
young people in Poland.
However, the problem which the new
arrivals have to face is the relatively
high cost of renting a flat which is now
higher only in Warsaw. This factor
may be to Wrocław’s detriment when
choosing a university. Prices often
force students to live on the outskirts
of the city, which may lower the standard of living and discourage them
from settling down for a longer period
of time. After graduating, purchasing
a flat – the price of which is relatively
high compared with average salaries –
rather than finding a job, is one of the
greatest challenges in Wrocław.
Rafał Dutkiewicz
Mayor of the City of Wrocław
Wrocław is the first city in Poland in which the municipality has
launched a special department for cooperating with universities
despite the fact that, under Polish conditions, universities do not
come under municipal jurisdiction. With regard to the demographic conditions in Poland and Wrocław, as a society, we are not
growing. Therefore, we need to invite new residents to come to
Wrocław. The best way is by inviting young people to study in our
city. For this reason, it is of the utmost importance to make Wrocław an academic city. We are great supporters of this process.
PwC Wrocław - A city with prospects 19
The second, very important challenge
faced by the city is to create attractive jobs for creative and ambitious
residents above the age of 30. In
Wrocław, we cannot complain about
the number of job offers. However, due to the specific nature of the
largest investors who hire Wrocław’s
graduates, i.e. shared service centres
and production companies, it would be advisable to consider taking
measures to support the creation of
jobs which promote the development
of experienced employees. The city
should continue taking actions aimed
at encouraging companies to locate,
in Wrocław or nearby, investments in
the form of research and development
centres and to create highly innovative
jobs. These activities are to be backed
by a programme conducted by WADA,
Driven by knowledge, thanks to which
Wrocław is eliciting more and more
interest among investors offering attractive jobs, by setting up e.g. software house type entities which employ IT
specialists. Also, large financial centres which initially only offered simple
processing positions, are currently
creating so-called Centres of Excellence, providing job offers for people with
higher qualifications. Establishing
the Wrocław Research Centre EIT+
has made it possible to bring many
outstanding scientists to the city
who not only conduct research but
also work on its commercialization.
Wrocław should continue supporting
the creation of highly specialist jobs,
which would enable retaining the most
valuable experts, thereby preventing
them from migrating to Warsaw or
abroad.
Speaking of demography, we cannot
leave out the question of immigration
since it could have a significant impact
on the number and cultural diversity of
the residents of Polish metropolises in
the near future. When designing new
strategies, Wrocław’s authorities should
already be thinking about how to make
immigration a positive phenomenon.
Despite the fact that preparations for
receiving immigrants from Syria and
Ukraine are still in the early stages, the
city should be thinking about preparing
society and cultural and social aid institutions for the arrival of immigrants.
Tomasz Śpiewak
Bearing in mind the need to strengthen the
human capital of the Wrocław agglomeration, we have begun working on the concept
of promoting Wrocław on a large scale as an
academic centre in Poland and abroad. In
the first stage, we took over the managing
of the office of the Teraz Wrocław project
which promotes the city and its universities
and supports the recruitment of students
mainly from East European countries.
Moreover, in cooperation with Wrocław’s
public universities, we are preparing a
programme to promote the city’s academic
potential in Poland and abroad.
20 PwC Wrocław - A city with prospects
We want to diagnose the needs
of the universities and, in the longer term,
of the employers, as well as identify
the most effective channels for reaching
potential candidates. We plan to target our
activities at young people not only from
Europe, including e.g. Spain and Italy, but
we will also try and reach the young generation of Poles living in the US who may find
Wrocław’s schools attractive for economic
reasons. We want to promote Wrocław
as a place not only for studying but also
for living and developing a career.
Director of the Centre
for Promotion & Services
at Wrocław Agglomeration
Development Agency
In the city budget for 2015,
the expenditure on education and upbringing was
estimated at more
than PLN 920m.
Social
infrastructure
The standard and availability of social infrastructure have a significant
impact on the residents’ quality of
life and their satisfaction with day-today functioning in the city. Access
to day care centres, kindergartens,
and schools as well as well-equipped
health care centres increases life satisfaction in a given city. In Wrocław,
the number of places in kindergartens
and schools appears to be sufficient
at present, with repairs to and the
building of primary and lower secondary schools being the city’s key
investments in the social infrastructure budget. More than PLN 430m has
been allocated for this purpose as part
of the city’s investment tasks for the
years 2015–2019. The construction
of the School and Kindergarten Group
No. 12, which was possible thanks
to co-financing with EU funds, is an
example of a well-planned investment
in the school infrastructure, making
use of modern technologies and renewable energy sources. As part of this
project, modern buildings housing
a primary school, kindergarten, and
library were erected, which meet the
needs of the housing estate of Maślice which is undergoing intensive
development. Activities of this type,
tailored to the needs of residents in
districts on the city’s outskirts, are
undoubtedly an effort to meet the inhabitants’ expectations. On the other
hand, however they encourage making
the decision to move to the suburbs
which could result in the further depopulation of the city centre. Looking
at the bigger picture, primary and
lower secondary education has become one of the more significant areas
in Wrocław’s development. This can
be seen in the transformation of the
Department of Education at the Municipal Office into a department which
now has far more responsibilities;
performing tasks in this area takes up
a large part of Wrocław’s funds. In the
city budget for 2015, expenditure on
education and upbringing was estimated at more than PLN 920m. The
infrastructure in the area of health
care is also changing – among the
investments made in recent years, we
should mention the New Voivodeship
Hospital, the Academic Research Hospital in ul. Borowskiej, as well as the
renovation of the Voivodeship Specialist Hospital in ul. Kamieńskiego.
Jacek Sutryk
Speaking of creating social infrastructure
which could be of key importance to the
city’s further development, we should mention the plans to create local activity centres
in various parts of Wrocław, which will be
formatted in a multifunctional manner.
Places for integrating local communities will
be established above all on the outskirts of
the city. These will be spaces in which the
residents are able to satisfy a wide variety of
their social needs – among other things, there will be a club for senior citizens, a theatre,
a space for small concerts. We want them
to be places where people can connect and
bond, and we are counting on such spaces to
see an increase in the residents’ activity.
Director of the Department
of Social Affairs
Municipal Office of Wrocław
PwC Wrocław - A city with prospects 21
Wrocław has a growing cultural infrastructure
which is of a high standard, including:
the City Stadium, National Forum of Music,
Africarium at the ZOO, and Theatre Capitol.
The broadly understood social infrastructure also includes leisure and
meeting places for residents. Wrocław
boasts a large number of old parks
which, thanks to investments to renovate and promote them (the Wrocławianie na polanie programme), have
become, in particular at the weekends,
places for family outings and sports
activities. At present, after the absence for many years of new green places
on the map of Wrocław, investments
in three new parks are under way: Ślężański Mamut in Oporów, Słoneczny
Park in Ołtaszyn, and Park Jedności
in Zakrzów – all of them put forward
as part of the Wrocław Civic Budget.
Among the new investment projects,
the actions taken by the Wrocław University of Technology are also worth
mentioning. The University has begun
converting the boulevard at Wybrzeże
Wyspiańskiego into an area for water
sports enthusiasts.
22 PwC Wrocław - A city with prospects
This is a step towards developing areas
on the River Oder, whose recreational potential is still not fully used
due to the insufficient infrastructure
for leisure activities on the river. By
contrast, Wrocław has few swimming
pools; the number (per resident) is
relatively small. In response to this
lack, there are plans to build a modern
swimming pool, which is to be one of
the investment projects prepared as
part of the World Games 2017.
Apart from the basic elements of social
infrastructure listed above, we should
not forget about places which give
residents space for integrating and for
undertaking joint activities. It is in
such meeting places that social capital
is built, amongst others, in low-threshold places for young people, in
which diversity is accepted, and which
may even be created by young people
to a certain extent. Such activities
support integration, prevent the social
exclusion of young people who come
from poor backgrounds, and teach
taking responsibility for common
spaces.
Wrocław has a growing cultural infrastructure which is of a high standard.
High expenditure has been incurred
or budgeted in connection with the
construction of the City Stadium, the
National Forum of Music, Africarium
at the Wrocław ZOO, the renovation of
Theatre Capitol and the preparation of
the infrastructure for the World Games
2017. It will be a challenge to use these
spaces in a manner which ensures they
serve the residents, are profitable and
that their maintenance is not too costly
for the city budget.
In 2014, 86.6 thousand films
were screened and 1,714
theatre plays were staged
in Wrocław. The city’s museums and exhibitions were
visited by 1.2m people, and,
once again, the most frequently viewed painting was
the Racławice Panorama.
Quality of life
A significant element which affects
the decision about choosing a place
to live is the quality of life. According to the Wrocław Social Diagnosis of 2014, life satisfaction in Wrocław is very high and is growing.
We could list many factors which
have an impact on the residents’
comfort, starting from a broad
range of job opportunities and
attractive pay levels, through access
to a diversified mix of services for
the day to day care of children and
elderly people, to the standard
and availability of health care and
cultural & entertainment activities.
When considering the factors which
affect the standard of living, we
should not forget about the state
of the natural environment, green
spaces, noise levels or satisfaction
with one’s job or hobby.
The quality of life has the greatest effect
on migration because a low standard of
living makes the decision to move far
easier. To prevent the city’s inhabitants
from emigrating, both abroad and also
to other voivodeships or villages outside Wrocław, activities should be undertaken to improve their comfort. Access
to a broad range of cultural events has a
positive effect on the residents’ quality
of life. In order to inform Wrocław’s
residents about cultural events in an
effective manner, the city has created
a portal www. gowroclaw.pl which is
used for placing information about all
such events taking place in Wrocław.
A Cultural Information Point has also
been established. At present, it seems
the problem is not about initiating new
cultural activities but about informing
the residents effectively about those
already in progress. According to the
findings of the Wrocław Social Diagnosis
of 2014, 9 to 14% of city dwellers make
use of paid-for forms of culture on a
regular basis, whereas the most popular
spaces for spending free time are in the
vicinity of the Market Square and in
green areas. The most frequent forms
of participating in culture include mass
events and festivities and going to the
cinema. In 2014, 86.6 thousand film
were screened and 1,714 theatre plays
were staged in Wrocław. Wrocław’s
museums and exhibitions were visited
by 1.2m people, and the most frequently viewed painting was the Racławice
Panorama.* A huge challenge faced
by Wrocław is 2016, when the city will
become a European Capital of Culture
and when it will be clear which cultural
projects evince the most interest among
the residents.
A huge challenge faced by Wrocław is 2016, when the city
will become a European Capital of Culture and when it will
be clear which cultural projects evince the most interest
among the residents.
*
source: Wrocław. The Social and economic situation, 1st quarter, 2015.
PwC Wrocław - A city with prospects 23
Reducing noise levels, increasing the level of security and making the road
traffic less onerous still
remain a challenge.
Senior citizens also deserve special
attention. Due to changes in the age
structure of the residents, the number
of activities addressed to this group
has been increasing for several years.
We have seen a considerable increase
in the number of non-governmental
organizations offering preventive health care services, interesting forms of
spending free time and education for
groups of senior citizens. This shows
the scale of the challenge which looking after elderly people will become,
as well as the great potential of that
social group. The Strategy of Support
for Senior Citizens in the Nadodrze
District is an example of including the
elderly in the social life of the neighbourhood.
Reducing noise levels, increasing the
level of security and making the road
traffic less onerous still remain
24 PwC Wrocław - A city with prospects
a challenge. At present, the travelling
time from the city centre to residential districts during the rush hour has
increased by more than 40%, thus
illustrating the gravity of the problem
of traffic jams.
The above mentioned issues are
currently being debated, with the
participation of the residents. On 6
September 2015, a referendum was
held in Wrocław. One of the questions
concerned, among other things,
reducing motor traffic in the centre
of Wrocław, within the area of the socalled Cultural Park “The Old Town”.
The majority of people voted in favour
of this solution (67.5%). It should, however, be emphasized that this result
cannot be considered to be the vote of
the entire community because there
was only a 10.5% turnout at the polls.
The city’s image and
forging the residents’
identity
Wrocław is very effective at investing
in building the image of an open,
innovative, and dynamic city. Good
positioning on the Internet and the
implementation of a tourism development strategy for Wrocław for
the years 2008–2013 have led to an
increase in the number of both domestic and foreign tourists. However,
the city must also remember to direct
such promotion inwards, to its own
residents. Such activities make people
proud of the place they live in, encourage the residents to identify more
closely with Wrocław, and increase
the citizens’ sense of responsibility
for their city. Forging an identity
seems to be a very important element
of the city’s policy, which is aimed at
retaining the residents. A key project
enabling the residents to participate in
the city’s management is the Wrocław Civic Budget. In 2014, over 150
thousand residents (i.e. one citizen
100%
in four) decided about the allocation
of PLN 20m. At present, a debate is
being held about the Wrocław Civic
Budget 2015 and another step to make
it more participative. Wrocław may be
the very first city in Poland to decide
to extend to non-governmental organizations rights to carry out projects
selected as part of the WCB. This
would be an innovative step which would shape the residents’ identity even
more profoundly and which would
integrate them by encouraging them to
take joint action.
A key project enabling
the residents to participate in city management
is the Wrocław Civic Budget. In 2014, over 150 thousand residents (i.e. one
citizen in four) decided
about the allocation
of PLN 20m.
The further shaping of a civic society
may pose a major challenge. The referendum held in Wrocław in September
drew only 10.5% of those eligible to
vote to the polls. The voter turnout
at the nationwide elections in recent
years has also been below the average
in large cities.
Frekwencja
w wyborach
Wrocław
Voter turnout
at the elections
Frekwencja
w wyborach
Warszawa
Voter turnout
at the elections
in Wrocław
in Warsaw
Frekwencja
w at
wyborach
Kraków
Voter
turnout
the elections
in Kraków
90%
Voter turnout
at the elections*
80%
69 %
68 %
70%
59 %
60%
61 %
57 %
63 %
47 %
50%
41 %
38 %
36 %
40%
40 %
33 %
30%
20%
11 %
10 %
9%
10%
0%
*
Polish parliamentary
elections to the Sejm
and Senate
9 October 2011
Local government
elections
16 November 2014
źródło: Państwowa Komisja Wyborcza, IX 2015 r.
Elections to the European Parliament
25 May 2015
Presidential elections
10 May 2015
Nationwide
referendum
6 September 2015
PwC Wrocław - A city with prospects 25
The lack of motivation
among the younger generation
to participate in projects
for the good of the local
community is worrying.
“The transformation of the masses
into citizens and giving pupils an
opportunity to have direct contact
with the mechanisms of self-government, politics, culture, and the market” are referred to in the strategy
Wrocław beyond 2020. However, the
greatest challenge is indeed encouraging Wrocław’s youngest residents
to become involved. In the Wrocław
Social Diagnosis 2014, the motives
behind the residents’ involvement in
local activities were analysed. The
lack of motivation among the younger generation to participate in any
project for the good of the local community proved worrying – as many as
25% of the people aged 15–24 declared
that nothing would motivate them to
engage in such activities. That is why
Jacek Sutryk
Director of the Department
of Social Affairs
Municipal Office of Wrocław
26 PwC Wrocław - A city with prospects
the city is taking steps to encourage
young people to express their opinions
about trends in Wrocław’s development. While working on another
development strategy, the Municipal
Office will ask lower secondary school
students what the most important
thing is for them and what, from their
point of view, should be included in
the strategy. Non-governmental organizations and the Wrocław Centre for
Social Development are also working
on getting young people involved in
social activities. The numerous projects promoting voluntary work and
showing opportunities for engaging in
activities for the good of the city are
producing measurable results.
It is important that the city cooperate with
non-governmental organizations in creating
social infrastructure. There is a lot going
on in this area – a programme of cooperation with non-governmental organizations,
adopted by resolution of the City Council,
is a good example. Almost PLN 100m has
been allocated for this programme. The city
Wrocław, which is very active and
which demonstrates an ability to build
broad partnerships, has great potential
for creating innovative solutions to problems in the social sphere. All we need
to do is create space for this and support the residents in developing new
solutions, which will make Wrocław a
more competitive place in which to live.
At present, a place is being created
which will be a centre for students’ and
citizens’ activities; a meeting place for
the local community, students, business representatives, and representatives of non-governmental organizations,
in which innovative social projects
affecting the city’s development might
be initiated and carried out.
is handing over the existing social infrastructure to non-governmental organizations, and
they are revitalizing these spaces and then
conducting social activities in them. We
also have a programme which puts schools
equipped with sports infrastructure under
the obligation to make it available to nongovernmental organizations after classes.
Infrastructure
Wrocław stands out among other
metropolises in terms of infrastructural
projects. However, can the pace
of change match not only the growing
needs of its residents but also encourage other people to settle in the metropolis? What steps should be taken
to make Wrocław an attractive city
not only because of its economic and
market conditions but also due to its
above-average quality of life?
In the course of our consultations, it
was mainly the question of the so-called “hard” infrastructure merging with
the city’s social sphere that came to
the forefront. Speaking of infrastructure, we should not confine ourselves
exclusively to basic elements such as
transport, public utilities or access
to housing, but we should also take
into account investments associated
with the natural environment, access
to leisure as well as the city’s cultural
facilities. Wrocław’s development
strategy should take account of the
changes which allow the offer addressed to potential residents to be made
more appealing and the development
of own creative solutions to the current challenges faced by the city.
Wrocław must not forget that each
and every community is an individual
case – instead of copying ready-made
solutions, the city should create innovative “tailor-made” ideas which best
suit the realities and specific nature of
Wrocław’s community. The most difficult task for Wrocław is to work out a
further path for its development which
would be attractive to both present and
future residents and which would take
into account the city’s individuality.
PwC Wrocław - A city with prospects 27
Infrastructural
challenges
The main infrastructural challenges
faced by most Polish cities are issues
related to ensuring order within their
space, stopping the process of uncontrolled suburbanization, revitalizing
urban space, and the efficient correlation of new residential projects with the
transport infrastructure.
Wrocław is a city which allocates substantial funds to improving its infrastructure
and puts into practice ambitious investment ideas, thereby making it stand out
among other cities in Poland but, at the
same time, it seems to always be a step behind the growing needs and requirements
of its residents.
In Wrocław,
there are 72 bike stations
where 720 bikes
await the residents.
In 2015,
there were more
than 1m hires.
Wrocław residents
have 220 km of cycle paths
at their disposal.
28 PwC Wrocław - A city with prospects
Wrocław is fighting
against traffic intensity
Improving public transport and making
traffic less onerous are issues which
most frequently come up in public discussions about the state of Wrocław’s
infrastructure.
Wrocław is listed as one of the most
clogged up cities in Poland, and the
reasons for this include: the uncontrolled expansion of the suburbs,
the low competitiveness of collective
public transport with individual motor
transport, and the lack of coordination
of planned investment projects with
infrastructural expansion in individual
parts of the city.
Wrocław is trying to meet these challenges – it has one of the most expansive systems of cycle paths in Poland
stretching over approximately 220 km.
The current transport infrastructure
development strategy is also trying to
respond to the present difficulties by
covering not only the expansion of tram
connections (which includes extending a tram line to the housing estate
of Nowy Dwór) but also by creating
ambitious solutions consisting
of constructing an agglomeration railway connected with a “park and ride”
system. Over the next few years, the
residents of areas adjacent to Wrocław
will be able to leave their cars near
the city boundaries and get to the city
centre by train within a few minutes.
Another interesting solution which could be used due to Wrocław’s location,
including its two natural sailing routes,
would be the return to water taxis
or trams operating on the Odra River.
City’s such as Vienna could provide
inspirations for the development of
alternative forms of public transport.
The city of “short distances” is consistently promoting the idea of sustainable development in transportation,
e.g. by facilitating pedestrian traffic,
ensuring high quality travel by public
transport to elderly people, the disabled or parents with children, by promoting bicycle transportation and by
“making it hard” for motor traffic (e.g.
by eliminating parking spaces at street
level and providing more expensive
underground car parks).
Improving the quality of public transport is not limited to making investments in infrastructure. Another
necessary element is to promote means
of transportation within the city limits
other than cars. A good example
of this type of activity is the leaflets
prepared by city institutions for the
employees of the largest companies
in Wrocław, containing information
about public transport and the connections available near a given location.
PwC Wrocław - A city with prospects 29
Wrocław
as a properly
planned city
Based on the interviews we have conducted, one of the key requirements
for reducing traffic congestion in the
city is proper land use planning in
Wrocław.
According to the people we interviewed, new housing estates should not
only have a residential function but
they should also guarantee easy access
to services, education and entertainment. When locating sites for them, the
possibility of using means of transport
other than cars should also be taken into
account, such as railways, trams or a
city bike system.
To achieve this, the city would to
open up to a new public management
model based on cooperation with nongovernmental organizations, private
investors as well as Wrocław’s residents. At present, private investors’
decisions are often concentrated on
areas other than local government’s
planned activities aimed at expanding
or improving the quality of the city’s
infrastructure. Coordinating these
activities and drawing up plans based
on transparent communication would
make it possible to create places of sustainable development for Wrocław’s
residents and also reduce the cost of
investment activities.
Examples of the activities which are
already being undertaken to meet these
challenges include the housing programme which has been adopted which
anticipates putting up attractive areas
for development in various regions of
the city for approximately 120,ooo residents and which, from the very outset,
has covered issues related to tailoring
the infrastructure with regards to sewage
disposal, water supply or access to public
transport. At the same time, the city is
beginning to open up, more and more
frequently, to talks with companies
which are already operating or potential
investors to adapt the transport infrastructure to the volume of commuters.
By transferring such activities to the
sphere of residential projects, Wrocław
has the chance of going down in the ranking of cities coping with problems with
the transport infrastructure.
Wrocław’s residents also seem to think
highly of the civic budget programme
thanks to which they have the chance
of tailoring the infrastructure to their
basic needs, demanding the implementation of ideas such as lit jogging paths,
outdoor gyms and the expansion of
green areas.
Dorota Jarodzka-Śródka
Chair of the Management Board
Archicom Group
30 PwC Wrocław - A city with prospects
In view of the dynamic development of the housing market in Wrocław
and the scale of developers’ operations, it is worth thinking about coordinating their activities with the city development policy. Pre-selecting the
areas in which new housing could be concentrated would contribute to a
reduction in the costs incurred by the city and investors, which would, in
turn, translate into benefits for the residents (including the availability of
housing and full technical and social infrastructure). A well-designed Local Land Use Plan could become the foundation for cooperation between
the developers and local authorities.
Basing the city’s activities
on social dialogue, and
coordination with private
investments, could effectively counteract the uncontrolled expansion of the
city. Suburbanization and,
more precisely, the accompanying spatial chaos, is a
phenomenon which could
prove to be one of the main
hindrances to Wrocław’s
harmonious development.
Uncontrolled
expansion of city areas
Basing the city’s activities on social
dialogue, and coordination with private
investments, could effectively counteract the uncontrolled expansion of the
city. Suburbanization and, more precisely, the accompanying spatial chaos, is
a phenomenon which could prove to be
one of the main hindrances to Wrocław’s harmonious development.
The lack of transparent rules for expanding the suburbs contributes to, among
other things, the degradation of the
natural environment, the inefficiency
of transport systems, an increase in the
costs of services provided by the city
(new areas which need to be provided
with the basic utilities, and low-density
housing makes the costs of building and
maintaining the infrastructure higher).
Reallocating residents to areas adjacent to Wrocław also contributes to a
reduction in the city’s funds due to the
loss of income tax revenues – a decrease
in these revenues often makes it impossible to carry out many investment
projects, including those relating to the
revitalization of urban areas, which might encourage residents to settle in the
centre of Wrocław.
PwC Wrocław - A city with prospects 31
Activities which consist of enhancing the residential, economic, and cultural functions
as well as improving security
(which will lead to improvement in the quality of life in
the city centre over the next
few years) may ease urban
pressure in the suburbs and
lower the costs of building
Wrocław’s infrastructure.
Revitalization of the city
centre as a solution
to processes of uncoordinated suburbanization
Restoring the city’s ability to develop
by revitalizing socially and economically degraded districts is one of the
primary objectives of the city development policy.
Making the centre of Wrocław more
attractive could effectively mitigate the
phenomenon of uncontrolled suburbanization. However, it should be remembered that revitalization is not only an
infrastructural but also a social process
intended to improve the living conditions
for residents. In practice, what are often
considered revitalization activities (in
practice, the modernization of the facades
of tenement houses) do not, in fact, have
much in common with such efforts.
Limited understanding of this concept is
the most frequent obstacle to the accomplishment of the planned results. Revitalization must be preceded by an in-depth
diagnosis of the problems which occur in
a given area and, subsequently, consist of
taking integrated remedial measures both
in the sphere of infrastructure and in the
social sphere. In West European coun-
tries, revitalization ceased to be regarded
as a method of renovating damaged
tenement houses or repairing an insufficient transport system a long time ago.
It is a tool for resolving social problems
and comprises both hard and soft activities addressed to the local community.
Spatially and socially degraded areas
are those most frequently coping not
only with the poverty of its residents and
social pathologies; the low levels of social
activity and involvement on the part of
the residents, lower levels of education
and more severe difficulties with public
health care also cause problems. This
is the reason why revitalization is also
treated as a tool for improving security
and public order.
Przemysław Filar
The main task of the public utilities
infrastructure is to connect Wrocław’s
residents to the heat distribution
network. Funds for these investments
can also be raised under environmental protection programmes.
32 PwC Wrocław - A city with prospects
Chairman of the Society
for the Beautification
of Wrocław
Examples of European cities which are
good at undertaking revitalization activities which address both infrastructural and social problems include Leipzig
and Bilbao. Bold ideas which consist
of using free space in the city centre
for building detached houses, designating buildings for non-commercial
use by members of cooperatives and
placing idle post-industrial facilities
which are unsuitable for living in
in the custody of so-called house
guardians, contribute to improving
the residents’ quality of life and
promoting cities in the international
arena. In the case of these cities, the
revitalization activities are based on
a broad, long-term strategy, dialogue
between public-private entities,
and getting the architects, urban planners, developers and city dwellers
themselves involved in the revitalization process.
Activities which consist of enhancing
the residential, economic, and cultural
functions as well as improving security
(which will lead to improvement in the
quality of life in the city centre over the
next few years) may ease urban pressure in the suburbs and lower the cost of
building Wrocław’s infrastructure. It
seems, however, that Wrocław is still
faced with a challenge in the form of
devising a comprehensive revitalization
programme such as the one adopted
in Łódź, or the one currently being
discussed in Wałbrzych (“Communal
Programme for the Revitalization
of the City Centre for the years 20152025”). With considerable support
from EU funding (approximately
PLN 25bn will be available under operational programmes) and the relatively small share of own funds over
the next few years, Wrocław has the
chance of revitalizing most of the areas
Improving the quality of transport,
curbing the urbanization chaos, and
revitalizing urban areas are the key
areas, from Wrocław’s perspective,
which require decisive and bold action
to be taken by the city. In spite of these challenges, Wrocław has the potential to become a city which is selected
not only because of the employment
opportunities but also an above-average quality of life. Effective infrastructure management combined with
economic development could turn
Wrocław into an innovative location
which, in particular attracts young
people. Over the next few years, Wrocław should take the most comprehensive actions possible to make use
of its potential and lay out a coherent,
harmonious vision of its development
so as to become not just a temporary
stopover for its residents but a place in
which to live.
Improving the quality of transport, curbing
the urbanization chaos, and revitalizing
urban areas are the key areas, from Wrocław’s
perspective, which require decisive and bold
action to be taken by the city.
PwC Wrocław - A city with prospects 33
We hope this publication will
be but an introduction to a
broader discussion about the
development of Wrocław. For
each of the areas described, we
have presented the most important, in our opinion, growth
factors and challenges faced by
Wrocław. For some people, the
points outlined in this study
may seem obvious, while other
readers may find them controversial. However, the conclusions drawn from an analysis
of the three areas which have a
prominent effect on Wrocław’s
development are positive.
At present, as part of the “smart city”
concept, we talk about the need to
develop six spheres which make up
the smart city concept: the economy (smart economy), transport and
communication (smart mobility), the
environment (smart environment),
people (smart people), quality of life
(smart living), and intelligent management (smart governance). A smart
city is one which can, on the one hand,
accurately diagnose and satisfy the
needs of its residents while, on the
34 PwC Wrocław - A city with prospects
other hand, emphasizing the maturity
of the administration which helps it to
respond to the changing conditions in
an organized manner. Today, in times
of constant change, it will certainly
be a key factor in determining competitive advantage. Wrocław, which
has already been striving for several
years to improve the quality of life of
its residents in a smart way, by implementing innovative solutions in a
consistent manner and by engaging in
broad social dialogue, has the chance
of becoming a role model for other
Polish cities.
Shortly, the discussion about trends
in Wrocław’s development will gain
momentum, and the conclusions
drawn from this public debate will be
reflected in the city’s strategy for the
coming years. We hope that representatives of the city’s authorities and
the residents together will manage
to implement some ambitious plans
thanks to which Wrocław will be a city
cited as an example not only in Poland
but across Europe.
Kontakt
prof. Witold Orłowski
Tomasz Wołczek
Chief Economic Advisor
PwC Advisory Department
tel. +48 502 184 494
witold.orłowski@pl.pwc.com
Director
PwC Tax & Legal Department
tel. +48 502 184 840
tomasz.wolczek@pl.pwc.com
Marcin Sawicki
Katarzyna Charchut
Director
PwC Audit and Assurance
Services Department
tel. +48 502 184 136
marcin.sawicki@pl.pwc.com
Senior Consultant
PwC Tax & Legal Department
tel. +48 519 506 573
katarzyna.charchut@pl.pwc.com
Katarzyna Mazurek
Corporate Social Responsibility
Expert
PwC Marketing Department
tel. +48 519 507 730
katarzyna.mazurek@pl.pwc.com
PwC Wrocław - A city with prospects 35
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